The Nifty 50 hit the 21,800 mark for the first time on December 28, the monthly F&O expiry day, and looks on course for the psychological 22,000 mark in the early days of January series. But, for that to take place, the index needs to decisively surpass and hold the 21,800 levels, whereas 21,700-21,500 is going to act as a support zone for the market, experts said, adding that on the overall, the momentum remains in favour of bulls.
On December 28, the benchmark indices continued to end at a fresh all-time closing high. The Nifty 50 jumped 124 points to 21,779 and formed a bullish candlestick pattern on the daily charts, while the BSE Sensex was up 372 points at 72,410.
The Nifty Midcap 100 and Smallcap 100 indices remained positive despite breadth tilted in favour of bears, rising 0.6 percent and 0.8 percent.
Stocks that saw buying interest on Thursday included Hindustan Petroleum Corporation, Steel Authority of India, and Gujarat State Petronet. Hindustan Petroleum Corporation has seen a breakout of several days of consolidation and recorded 9.4 percent gains at Rs 418 on the NSE. The stock has formed a healthy bullish candlestick pattern with a long upper shadow on the daily charts, with robust volumes.
It traded above all key moving averages (20, 50, 100 and 200-day EMA - exponential moving averages) for nearly couple of months now, which is a positive sign.
Steel Authority of India continued making higher highs, higher lows formation for four days in a row, and on Thursday, jumped 6.4 percent to Rs 123 with strong volumes. The stock has formed robust bullish candlestick pattern on the daily scale and traded well above all key moving averages.
Gujarat State Petronet has seen a breakout of downward sloping resistance trendline adjoining highs of June 16 and December 12, and formed strong green candle with sizeable upper shadow on the daily timeframe with healthy volumes. The stock rose 4.7 percent to Rs 308.6, the highest closing level since February 7, 2022.
Here's what Shrikant Chouhan of Kotak Securities recommends investors should do with these stocks when the market resumes trading today:
Hindustan Petroleum Corporation
The stock has given a breakout of its Ascending Triangle chart pattern on the daily scale. Additionally, it has formed a higher bottom formation along with incremental volume activity, hence the structure of the stock indicates the beginning of a new up move from the current levels.
For positional traders, Rs 400 would be the trend decider level. Trading above the same uptrend formation will continue till Rs 450. However, if it closes below Rs 400 traders may prefer to exit from trading long positions.
Steel Authority of India (SAIL)
On the daily and weekly scale, the counter is into a rising channel chart formation with higher high and higher low series pattern. The technical indicator like ADX (average directional index) also indicating further up trend from current levels which could boost the bullish momentum in coming horizon.
As long as the counter is trading above Rs 117, the uptrend formation is likely to continue. Above which, the counter could move up to Rs 132.
Gujarat State Petronet (GSPL)
On the weekly charts, the counter was into a rangebound mode from the past few weeks. Eventually, it has given the range breakout and it has formed higher bottom series. Therefore, the closing above the resistance line indicates further bullish momentum to continue from the current levels.
For the trend following traders, Rs 295 would act as support level. Above the same, it could move up to Rs 330 levels.
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